A higher- ranking executive with Nigeria’s central bank, Adamu Lamtek, has reportedly denied that his institution had placed restrictions on the use of cryptocurrencies. Preferably, Lamtek, who is the deputy governor responsible for corporates services at the Central Bank of Nigeria (CBN), says his organisation’s directive contrariwise applies to the banking sector.
Prohibition Only Applies to Banks
The remarks by Lamtek, who spoke on behalf of the CBN governor Godwin Emefiele, result from the central bank’s February 5, 2021, directive which prohibited banks from facilitating crypto-related transactions. Right away following the announcement, financial institutions began to comply with the directive. Since then volumes on centralized crypto swaps have plunged while reports suggest that volumes on peer to peer platforms are on the rise.
In the meantime, earlier the latest communication from the CBN, rumours circulated that authorities would soon clampdown on peer to peer sell like Binance’s P2P platform. However, Lamtek, who spoke at a seminar for the country’s finance correspondents and business editors, cleared that the CBN directive did not in fact ban cryptocurrency trading.
Meanwhile, after the CBN ordered banks to stop facilitating crypto acta, many leaders from Nigeria’s blockchain and fintech space reacted by expressing their opposition. One of these bandleaders, Adedayo Adebajo, the Managing Director at Jelurida Africa DLT, tells Bitcoin.com News that after extensive deliberations, innumerable were in favour of regulating the industry rather than a total ban.
CBN Has No Power to Stop P2P Trading
As previously reported by Bitcoin.com Word, this CBN prohibition has been opposed by non-crypto parties that include members of the Nigerian Senate as well as the territory’s Vice President, Yemi Osinbajo. Now, according to Adebajo, this latest CBN stance on cryptocurrencies could well be a feedback to the voices that are opposed to a complete ban. Adebajo said:
Let’s not forget that the initial attempt only scratched the show up a bit as trading continues on the peer to peer platforms despite the CBN directives. Allowing trades to continue can’t be said to be subject to CBN’s power anymore as the monetary sector has partially been decentralized.
While the CBN is not in a position to stop peer-to-peer trading, Adebajo however believes this latest clarification to be “a way clockwise one which we all hope with continuous effort to regulate the industry, adoption will be broad and fast.”
What do you garner of the CBN’s clarification that crypto trading is not banned? Tell us what you think in the comments section below.
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